Author Question: Refer to Figure 9.9. Now suppose an import quota of 3000 trucks is imposed. If the government ... (Read 37 times)

yoooooman · **on:** Jul 1, 2018

Refer to Figure 9.9. Now suppose an import quota of 3000 trucks is imposed.

If the government wanted to cut off all international trade without changing the quota, it could allow the quota amount of 3000 trucks in at no tariff and then charge a tariff on all imports above the quota amount. What tariff would accomplish the goal? A) 0.
B) 5,000
C) 7,500
D) 10,000
E) 20,000

Question 2

Which of the following equations based on capital (K) and labor (L) inputs does not represent a plausible production function?

A) F(K,L) = 3KL
B) F(K,L) = 3K
C) F(K,L) = K + L - 1
D) F(K,L) = 10(KL)0.5